Stitch Fix (NASDAQ:SFIX) Stock

STITCH FIX INC-CLASS A

Stitch Fix

Stitch Fix Inc offers personal style services for men and women. The company engages in delivering one-to-one personalization to clients through the combination of data science and human judgment. It provides a shipment service called A FIX where the stylist's hand selects items from several merchandise with analysis of client and merchandise data to provide a personalized shipment of apparel, shoes, and accessories suited to the client's needs. The company offers products across categories, brands, product types, and price points including Women's, Petite, Maternity, Men's, and Plus. It also offers various product types, including denim, dresses, blouses, skirts, shoes, jewelry, and handbags and sells merchandise across various ranges of price points.

Stitch Fix Inc

Stitch Fix, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SFIX#NASDAQ">SFIX</a>) stock was trading higher but has since reversed and started to trade lower after the company reported better-than-expected third-quarter earnings on Tuesday, after the <a href="https://www.benzinga.com//node/45872762">market closed</a>.
What To Know: The company reported a loss of six cents per share, beating the consensus estimate of an 11 cent loss. In addition, Stitch Fix reported sales of $325.02 million, beating the consensus estimate of $314.44 million.
The company reported 2.35 million active clients, down 10.6% year-over-year, with net revenue per active client rising 3.2% to $542.
It ended the quarter with $242.1 million in cash, cash equivalents and investments.
&#8220;Stitch Fix delivered strong&nbsp;third quarter&nbsp;results, marked by our overall return to year-over-year revenue growth,&#8221; said Matt Baer, CEO, Stitch Fix. 
&#8220;Our performance, which exceeded expectations, is the direct result of the strength of the Stitch Fix value proposition and the team&#8217;s disciplined execution of our strategy. Now in the growth phase of our transformation, we are focused on cementing our role as the retailer of choice for apparel and accessories by consistently delivering the most client-centric and personalized shopping experience.&#8221;
Outlook: The company sees fourth-quarter sales from $298 million to $303 million, versus the consensus estimate of $288.57 million.
Stitch Fix now expects fiscal-year sales from $1.25 billion to $1.26 billion, versus the consensus estimate of $1.23 billion. The company previously expected sales form $1.23 billion to $1.24 billion.
Following the earnings report, Telsey Advisory Group analyst Dana Telsey maintained a Market Perform rating on Stitch Fix and maintained a $6 price target.
SFIX Price Action: Stitch Fix closed Wednesday 10.54% lower at $4.29, according to data from <a href="https://pro.benzinga.com/">Benzinga Pro</a>.
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Image: This illustration was generated using artificial intelligence via Midjourney.

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SFIX

What's Going On With Stitch Fix Shares Wednesday?

Stitch Fix (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SFIX#NASDAQ">SFIX</a>) stock is trading lower after the company reported better-than-expected <a href="https://www.benzinga.com/markets/earnings/25/06/45872762/stitch-fix-shares-slip-after-q3-results-details" target="_blank" rel="noreferrer noopener">third-quarter financial</a> results and guidance.
Stitch Fix reported quarterly losses of six cents per share, which beat the analyst consensus estimate of losses of 11 cents per share. Quarterly revenue reached $325.02 million, beating the&nbsp;$314.44 million consensus estimate.
The company expects fourth-quarter revenue of $298 million-$303 million, versus the&nbsp;$288.57 million estimate. Stitch Fix raised its fiscal 2025 revenue guidance from $1.23 billion-$1.24 billion to $1.25 billion-$1.26 billion, versus the $1.23 billion estimate.
Also Read: <a href="https://www.benzinga.com/news/earnings/25/03/44263465/stitch-fix-stock-soars-on-q2-earnings-beat-strong-revenue-guidance" target="_blank" rel="noreferrer noopener">Stitch Fix Stock Soars On Q2 Earnings Beat, Strong Revenue Guidance</a>
Telsey Advisory Group analyst Dana Telsey maintained Stitch Fix <a target="_blank" href="https://www.benzinga.com/quote/SFIX/analyst-ratings" rel="noreferrer noopener">with a Market Perform</a> and a&nbsp;$6&nbsp;price target.
Telsey noted that Stitch Fix&#8217;s momentum continued into the second half, with another healthy beat in the fiscal third quarter. This was driven by better-than-expected revenue and expense control, partially offset by slightly greater gross margin deleverage.
Encouragingly, despite another period of double-digit active client declines YoY, the QoQ decrease narrowed to 0.8% (from down 2.6% last quarter), a nice progression towards the company&#8217;s target of positive sequential growth by fiscal 2026, the analyst said.
Additionally, the better active client result and a strong response to the company&#8217;s customer-facing initiatives helped to drive growth in women&#8217;s and the fix channel, as well as men&#8217;s and freestyle, she said. AOV sequentially improved to +10% (from +9% last quarter). It was driven by increases across items per fix, keep rates, and AUR for the second consecutive period.
In all, these solid underlying revenue-driving metrics helped to deliver the first quarter of positive overall topline growth since 2Q22, ahead of the company&#8217;s prior goal of achieving revenue growth by the end of fiscal 2026, the analyst said.
<h3 class="wp-block-heading">Another Solid Revenue And EBITDA Beat On The Books</h3>
Stitch Fix raised its topline guide ahead of the prior consensus, Telsey said. The low end of its prior adjusted EBITDA guide increased, but it still bracketed the prior consensus.
While management refrained from offering formal fiscal 2026 guidance, the analyst said tariffs will likely pressure costs, while an uncertain consumer environment could further weigh in the coming quarters.
While the company&#8217;s transformation efforts continue to resonate and bear fruit, he noted that visibility to the return to subscriber growth and continued growth in the current macro-operating environment remains challenging.
Price Action: SFIX stock is down 5.74% at $4.52 at last check Wednesday.
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Image: Shutterstock

Price Target

Reiteration

Analyst Ratings

Trading Ideas

Stitch Fix Delivers First Revenue Growth In Years, Analysts See Progress Toward Subscriber Comeback

WIIM

SFIX stock has given up its prior gain. Stitch Fix shares were trading higher after the company reported better-than-expected Q3 financial results and issued Q4 sales guidance above estimates. Also, the company raised its FY25 sales guidance above estimates.

As of June 11, 2025, two stocks in the consumer discretionary sector could be flashing a real warning to investors who value momentum as a key criteria in their trading decisions.
The RSI is a momentum indicator, which compares a stock&#8217;s strength on days when prices go up to its strength on days when prices go down. When compared to a stock&#8217;s price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered overbought when the <a href="https://www.benzinga.com/topic/rsi">RSI is above 70</a>, according to<a href="https://pro.benzinga.com/"> Benzinga Pro</a>. 
Here's the latest list of major overbought players in this sector.
<h3 class="wp-block-heading">Stitch Fix Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SFIX#NASDAQ">SFIX</a>)</h3>
<ul class="wp-block-list">
<li>On June 10, Stitch Fix reported quarterly losses of six cents per share, which beat the analyst consensus estimate of losses of 11 cents per share. Quarterly revenue came in at $325.02 million, beating the $314.44 million consensus estimate. "Stitch Fix delivered strong third quarter results, marked by our overall return to year-over-year revenue growth," said Matt Baer, CEO of Stitch Fix. "Our performance, which exceeded expectations, is the direct result of the strength of the Stitch Fix value proposition and the team's disciplined execution of our strategy." The company's stock jumped around 17% over the past month and has a <a href="https://www.benzinga.com/quote/SFIX">52-week high of $6.98</a>.</li>
<li>RSI Value: 77.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</li>
<li>SFIX Price Action: Shares of Stitch Fix gained 1.3% to close at $4.79 on Tuesday.</li>
<li>Edge Stock Ratings: 76.16 Momentum score with Value at 71.94. </li>
</ul>
<figure class="wp-block-image size-full is-resized"><a href="https://www.benzinga.com/quote/sfix"><img loading="lazy" decoding="async" width="402" height="172" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/06/11070705/image-157.png" alt="" class="wp-image-945961" style="width:285px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/06/11070705/image-157.png 402w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/06/11070705/image-157-300x128.png 300w" sizes="(max-width: 402px) 100vw, 402px" /></a></figure>
<h3 class="wp-block-heading">Dave &amp; Buster&#8217;s Entertainment Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PLAY#NASDAQ">PLAY</a>)</h3>
<ul class="wp-block-list">
<li>On June 10, Dave &amp; Buster's reported first-quarter revenue of $567.7 million, missing analyst estimates of $576.41 million, according to Benzinga Pro. The entertainment and dining company reported adjusted earnings of 76 cents per share, missing estimates of 98 cents per share. "I am pleased to report that we are making good progress and our operating results significantly improved over the course of the first quarter. While performance in the first quarter was nowhere close to where we want and expect to be, our ‘back to basics' strategy is working and is driving a material recovery in our top-line trajectory," said Kevin Sheehan, board chair and interim CEO of Dave &amp; Buster's. The company's stock gained around 18% over the past five days and <a href="https://www.benzinga.com/quote/PLAY">has a 52-week high</a> of $51.27.</li>
<li>RSI Value: 74.4</li>
<li>PLAY Price Action: Shares of Dave &amp; Buster&#8217;s gained 1.2% to close at $25.87 on Tuesday.</li>
</ul>
Curious about other BZ Edge Rankings? Click here to discover <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-2#:~:text=Turn%20Market%20Chaos,when%20markets%20rebound">how similar stocks measure up</a>. 
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Photo via Shutterstock

Short Ideas

Pre-Market Outlook

Markets

PLAY

Top 2 Consumer Stocks That May Plunge In June

Stitch Fix shares are trading higher after the company reported better-than-expected Q3 financial results and issued Q4 sales guidance above estimates. Also, the company raised its FY25 sales guidance above estimates.

<h3>Gainers</h3>
<ul>
<li>INNEOVA Holdings (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INEO#NASDAQ">INEO</a>) shares moved upwards by 47.4% to $1.71 during Wednesday's pre-market session. The market value of their outstanding shares is at $16.8 million. </li>
<li>YSX Tech (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/YSXT#NASDAQ">YSXT</a>) stock increased by 26.28% to $6.39. The market value of their outstanding shares is at $149.7 million. </li>
<li>Stitch Fix (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SFIX#NASDAQ">SFIX</a>) shares increased by 16.91% to $5.6. The market value of their outstanding shares is at $721.2 million. The company's, Q3 earnings came out yesterday. </li>
<li>Interactive Strength (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TRNR#NASDAQ">TRNR</a>) shares moved upwards by 15.02% to $0.93. The market value of their outstanding shares is at $9.3 million. </li>
<li>Boqii Holding (AMEX:<a class="ticker" href="https://www.benzinga.com/stock/BQ#AMEX">BQ</a>) stock increased by 11.31% to $2.46. The market value of their outstanding shares is at $7.5 million. </li>
<li>Solid Power (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SLDP#NASDAQ">SLDP</a>) stock rose 11.04% to $1.81. The market value of their outstanding shares is at $324.6 million. </li>
</ul>
<h3>Losers</h3>
<ul>
<li>J.Jill (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JILL#NYSE">JILL</a>) stock declined by 12.7% to $14.7 during Wednesday's pre-market session. The market value of their outstanding shares is at $224.6 million. As per the press release, Q1 earnings came out today. </li>
<li>PetMed Express (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PETS#NASDAQ">PETS</a>) shares declined by 9.31% to $3.8. The market value of their outstanding shares is at $78.4 million. </li>
<li>Yoshiharu Global (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/YOSH#NASDAQ">YOSH</a>) stock decreased by 8.3% to $12.33. The company's market cap stands at $21.7 million. </li>
<li>Beachbody Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BODI#NYSE">BODI</a>) shares decreased by 8.27% to $4.22. The market value of their outstanding shares is at $29.5 million. </li>
<li>Chewy (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CHWY#NYSE">CHWY</a>) stock fell 7.52% to $42.35. The company's market cap stands at $17.5 billion. The company's, Q1 earnings came out today. </li>
<li>ZHONGCHAO (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ZCMD#NASDAQ">ZCMD</a>) stock decreased by 6.77% to $1.24. The company's market cap stands at $31.2 million. 
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</ul>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

The Beachbody Company, Inc. Class A Common Stock

BODI

CHWY

INEO

JILL

PETS

SLDP

TRNR

YOSH

YSXT

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12 Consumer Discretionary Stocks Moving In Wednesday's Pre-Market Session

Telsey Advisory Group analyst Dana Telsey maintains Stitch Fix (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SFIX#NASDAQ">SFIX</a>) with a Market Perform and maintains $6 price target.

Telsey Advisory Group Maintains Market Perform on Stitch Fix, Maintains $6 Price Target

Shares of Stitch Fix, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SFIX#NASDAQ">SFIX</a>) rose sharply in today's pre-market trading after the company posted <a href="https://www.benzinga.com/quote/FIX/earnings">better-than-expected results for its third quarter.</a>
Stitch Fix reported quarterly losses of six cents per share, which beat the analyst consensus estimate of losses of 11 cents per share. Quarterly revenue came in at $325.02 million, beating the $314.44 million consensus estimate.
Stitch Fix shares jumped 8.4% to $5.19 in the pre-market trading session.
Here are some other stocks moving in pre-market trading.
<h3 class="wp-block-heading">Gainers</h3>
<ul class="wp-block-list">
<li>Catheter Precision, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VTAK#NYSE">VTAK</a>) surged 101.9% to $0.46 in pre-market trading after the company received CE Mark approval for advanced vascular closure device LockeT.</li>
<li>INNEOVA Holdings Limited (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INEO#NASDAQ">INEO</a>) shares jumped 81.9% to $2.11 in pre-market trading.</li>
<li>FST Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KBSX#NASDAQ">KBSX</a>) jumped 61% to $2.51 in pre-market trading.</li>
<li>Vaxart, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/VXRT#NASDAQ">VXRT</a>) gained 49.7% to $0.5877 in pre-market trading after it said that it will reveal the first-ever oral norovirus vaccine trial results on Wednesday.</li>
<li>ZW Data Action Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CNET#NASDAQ">CNET</a>) climbed 41.5% to $1.79 in pre-market trading after the company announced it issued 358,424 restricted shares to investors for $3.00 per share with the total gross proceeds amounting to approximately $1,075,272</li>
<li>NuCana plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NCNA#NASDAQ">NCNA</a>) rose 38.5% to $0.1988 in pre-market trading after jumping 88% on Tuesday.</li>
<li>Imunon, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IMNN#NASDAQ">IMNN</a>) rose 16.1% to $1.88 in pre-market trading after jumping 22% on Tuesday.</li>
<li>YSX Tech. Co., Ltd (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/YSXT#NASDAQ">YSXT</a>) surged 12.7% to $5.70 in pre-market trading.</li>
<li>Getty Images Holdings, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GETY#NYSE">GETY</a>) gained 10.7% to $1.87 in pre-market trading. At a special meeting on Tuesday, Shutterstock's shareholders approved the adoption of the merger agreement between the company and Getty Images, with approximately 82% voting in favor.</li>
</ul>
<h3 class="wp-block-heading">Losers</h3>
<ul class="wp-block-list">
<li>Graphjet Technology (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GTI#NASDAQ">GTI</a>) shares tumbled 37.3% to $0.0545 in pre-market trading after receiving a delisting notice from Nasdaq on June 4.</li>
<li>Carisma Therapeutics, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CARM#NASDAQ">CARM</a>) dipped 32.5% to $0.7505 in pre-market trading after jumping 389% on Tuesday.</li>
<li>Senmiao Technology Limited (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AIHS#NASDAQ">AIHS</a>) shares fell 18.7% to $1.14 in pre-market trading after jumping 28% on Tuesday.</li>
<li>Gelteq Limited (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GELS#NASDAQ">GELS</a>) declined 18% to $2.42 in pre-market trading. Gelteq shares jumped 79% on Tuesday after the company announced it expanded its U.S. commercial strategy through an exclusive logistics and distribution agreement with Healthy Extracts.</li>
<li>Draganfly Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DPRO#NASDAQ">DPRO</a>) declined 17.5% to $3.06 in pre-market trading after gaining 11% on Tuesday.</li>
<li>American Superconductor Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMSC#NASDAQ">AMSC</a>) fell 14.3% to $29.54 in pre-market trading after the company announced a proposed public offering of common stock.</li>
<li>GlycoMimetics, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GLYC#NASDAQ">GLYC</a>) dipped 13.4% to $0.1475 in pre-market trading.</li>
<li>GitLab Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GTLB#NASDAQ">GTLB</a>) declined 12.4% to $42.50 in pre-market trading after the company reported first-quarter financial results and issued second-quarter sales guidance with its midpoint below estimates.</li>
<li>Arrive AI Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARAI#NASDAQ">ARAI</a>) fell 9% to $9.33 in pre-market trading. Arrive AI shares jumped over 62% on Tuesday after the company announced it obtained another patent for its AI-powered smart mailbox platform designed for autonomous and conventional package delivery</li>
<li>Cleveland-Cliffs Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CLF#NYSE">CLF</a>) fell 7.4% to $7.44 in pre-market trading. Shares of steel companies moved lower following reports the U.S. and Mexico are nearing a deal that would remove the Trump Administration's tariffs on steel imports.</li>
</ul>
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</ul>
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IMNN

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VXRT

Why Stitch Fix Shares Are Trading Higher By Over 8%; Here Are 20 Stocks Moving Premarket

Stitch Fix, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SFIX#NASDAQ">SFIX</a>) released its third-quarter results after Tuesday's closing bell. Here's a look at the key figures from the quarter. 
The Details: Stitch Fix reported quarterly losses of six cents per share, which beat the analyst consensus estimate of losses of 11 cents per share. Quarterly revenue came in at $325.02 million, beating the $314.44 million consensus estimate.
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For the third quarter, Stitch Fix reported:
<ul class="wp-block-list">
<li>Active clients of 2,353,000, a decrease of 18,000, or 0.8%, quarter-over-quarter; and a decrease of 280,000, or 10.6%, year-over-year.</li>
<li>Net revenue per active client (RPAC) of $542, an increase of 3.2% year-over-year.</li>
<li>Gross margin of 44.2%, a decrease of 130 basis points year-over-year, driven primarily by lower product margins.</li>
</ul>
&#8220;Stitch Fix delivered strong third quarter results, marked by our overall return to year-over-year revenue growth,&#8221; said Matt Baer, CEO of Stitch Fix. 
&#8220;Our performance, which exceeded expectations, is the direct result of the strength of the Stitch Fix value proposition and the team&#8217;s disciplined execution of our strategy,&#8221; Baer added. 
Outlook:&nbsp;The company expects fourth-quarter revenue in a range of $298 million to $303 million, versus the&nbsp;$288.57 million estimate. 
Stitch Fix raised its fiscal 2025 revenue guidance from a range of between $1.23 billion and $1.24 billion to a range of between $1.25 billion and $1.26 billion, versus the $1.23 billion estimate. 
SFIX Price Action: According to data from<a href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw"> Benzinga Pro</a>, Stitch Fix stock was down 0.42% at $4.68 in Tuesday's extended trading. 
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Photo: Shutterstock

Tech

Stitch Fix Shares Slip After Q3 Results: Details

Guidance

Stitch Fix Raises FY2025 Sales Guidance from $1.23B-$1.24B to $1.25B-$1.26B vs $1.23B Est

Stitch Fix Sees Q4 Sales $298.000M-$303.000M vs $288.57M Est

Earnings Beats

Stitch Fix Q3 EPS $(0.06) Beats $(0.11) Estimate, Sales $325.02M Beat $314.44M Estimate

After four decades of buying and selling stocks, I&#8217;ve learned that the best investment strategies are deceptively simple. They&#8217;re the kind of ideas that make perfect sense once you hear them but somehow escape the attention of most investors who are too busy chasing the latest hot trend or trying to outsmart the market with complex mathematical models.
One such strategy has been quietly minting money for those smart enough to pay attention: combining deep value with price momentum in the small-cap space. It&#8217;s an approach that flies in the face of conventional wisdom, which insists you must choose between being a value investor or a momentum player. But as I&#8217;ve discovered over the years, some of the market&#8217;s most powerful inefficiencies exist precisely where these two philosophies intersect.
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The results spoke for themselves. From 1964 to 2009, this strategy delivered annualized returns north of 21% and more than double the broad market&#8217;s performance. A thousand-dollar investment compounded into nearly $7 million over that period.
Not bad for a strategy you could execute with a basic stock screener and a willingness to own companies most people had never heard of.
But here&#8217;s the thing about markets: they evolve. What worked brilliantly in the 1980s and 1990s faces different challenges today. The microcap space has become cluttered with broken SPACs, penny stock scams, and biotech shells burning through cash with no viable products. Liquidity has become a real problem, and the regulatory environment has made many of these names practically uninvestable for anyone managing serious money.
So let me propose a variation on O&#8217;Shaughnessy&#8217;s theme, one that preserves the essential DNA of Tiny Titans while adapting it for today&#8217;s market realities. Instead of focusing on the absolute smallest companies, we&#8217;ll target what I call the ‘forgotten middle' stocks with market capitalizations between $300 million and $2 billion.
This isn&#8217;t quite microcap territory, but it&#8217;s nowhere near large enough to attract the attention of most institutional investors. These companies exist in a sweet spot: they&#8217;re too small for the big pension funds and mutual funds to bother with, too boring for CNBC to cover, and too illiquid for the high-frequency trading crowd to manipulate effectively.
What you&#8217;re left with is a hunting ground full of misunderstood companies that have survived their awkward adolescent phase and are on the verge of something bigger. When you can buy these businesses at cheap valuations and catch them just as their fortunes are turning, the results can be spectacular.
The strategy itself couldn&#8217;t be simpler. We&#8217;re looking for U.S. companies that meet three criteria:
First, size matters. Market cap between $300 million and $2 billion. Big enough to have real businesses with actual revenue streams, small enough to be ignored by the crowd.
Second, we want them cheap. Price-to-sales ratios in the bottom quartile of the market, ideally under 1.0. This isn&#8217;t about finding the absolute cheapest stocks, it's about finding businesses that are genuinely undervalued relative to their revenue-generating capability.
Third, we want momentum. Not the kind of momentum that comes from short squeezes or Reddit armies, but sustained price appreciation over the past twelve months, which puts these stocks in the top 5% of all performers. We exclude the most recent month to avoid getting caught up in short-term volatility.
The beauty of this combination is that it exploits two of the market&#8217;s most persistent behavioral biases. Investors consistently underreact to improving fundamentals, especially in unloved stocks. And once a stock starts moving higher, performance chasers eventually pile in, creating a self-reinforcing cycle of demand.
The $300 million to $2 billion market cap range represents what I consider the market&#8217;s most fertile ground for contrarian investors. These companies have moved beyond the survival stage that plagues true microcaps, but they haven&#8217;t yet attracted the institutional attention that tends to eliminate pricing inefficiencies.
Many of these businesses are at genuine inflection points&nbsp; are launching new products, expanding into new markets, or achieving profitability for the first time. When Wall Street finally notices what&#8217;s happening, the revaluation can be swift and dramatic.
Consider some examples from recent years.
&nbsp;Boot Barn was trading at half of sales in 2016 during a retail sector pullback. As the western wear retailer&#8217;s margins improved and sentiment shifted, the stock ran from under $10 to over $90.
Enphase Energy was a $300 million solar company trading below 0.5 times sales in 2017. As demand for microinverters exploded, early investors enjoyed a 100-bagger return.
These weren&#8217;t lucky picks or hot tips from Wall Street analysts. They were systematic discoveries using a disciplined screening process that identified cheap stocks with improving momentum.
Momentum gets a bad rap in value investing circles, but I&#8217;ve found it to be an essential filter for separating genuinely improving businesses from permanent value traps. The key is using the right time frame.
Twelve-month momentum, excluding the most recent month, has proven to be the gold standard. It&#8217;s long enough to filter out random noise and short-term manipulation, but responsive enough to catch businesses in the early stages of a turnaround or growth acceleration.
Some practitioners also incorporate six-month momentum as a confirmation signal. If a stock is performing well over both time frames, you&#8217;re probably looking at a genuine trend rather than a temporary blip.
This isn&#8217;t a set-it-and-forget-it strategy. You&#8217;ll need to rebalance monthly, selling any names that no longer meet the criteria and adding new ones that do. You&#8217;ll own some obscure companies that your friends have never heard of.
But you&#8217;ll also own some of the market&#8217;s biggest winners before they become obvious to everyone else.
After decades of watching markets cycle through various fads and fashions, I&#8217;ve come to appreciate strategies that are both simple to understand and grounded in solid behavioral finance principles. The combination of value and momentum in small-cap stocks represents one of the market&#8217;s most enduring inefficiencies.
By focusing on the $300 million to $2 billion market cap range, we can capture most of the upside potential of the original Tiny Titans strategy while avoiding many of the practical problems that plague true microcap investing.
The market will always offer opportunities to those willing to look where others won&#8217;t. In a world obsessed with mega-cap growth stocks and the latest meme stock craze, some of the best values are hiding in plain sight among the forgotten companies that are quietly building real businesses and generating genuine momentum.
Cheap stocks that are going up tend to keep going up. It&#8217;s a simple truth that has created fortunes for those disciplined enough to act on it. The next generation of Tiny Titans is out there waiting to be discovered.
Here are three companies that currently pass out momentum and value filters and could be huge winners:
OppFi operates in that uncomfortable corner of finance that makes most investors squirm: subprime lending. Trading at just 0.5 times sales with a $250 million market cap, this Chicago-based company partners with community banks to extend credit to the 60 million Americans who get turned away by mainstream lenders.
Here&#8217;s what caught my attention: the company just posted 112% net income growth in 2024 while everyone else in fintech is struggling. They&#8217;re generating $526 million in trailing revenue by doing something banks won&#8217;t—lending to people with imperfect credit at higher rates, but with technology-driven underwriting that actually works.
The bears will tell you subprime lending is risky, and they&#8217;re right. But OppFi uses advanced data analytics and machine learning to assess creditworthiness efficiently, and their loss ratios have been improving. Sometimes the businesses everyone avoids are exactly where the money is hiding.
Stitch Fix Inc. (Ticker: SFIX) &#8211; The Comeback Story Wall Street Forgot
Stitch Fix was once the darling of Silicon Valley, going public in 2017 with a $1.6 billion valuation. Today, it&#8217;s a wounded bird that&#8217;s starting to show signs of life. The company just beat Q2 expectations with revenue of $312.1 million and managed to achieve a 710 basis point sequential improvement in year-over-year revenue comps.
The business model remains compelling: they send you clothing they think you&#8217;ll like, you keep what you want and send back the rest. It&#8217;s retail meets data science, and when it works, it&#8217;s magical. Both their Men&#8217;s business and Freestyle channel returned to year-over-year revenue growth, suggesting the turnaround strategy is gaining traction.
Founder Katrina Lake returned as interim CEO in January 2023 after the previous management team couldn&#8217;t execute. Sometimes it takes a founder to fix what&#8217;s broken. The stock has been beaten up enough that modest improvements could generate substantial returns.
Universal Insurance Holdings (Ticker: UVE) &#8211; Florida&#8217;s Hurricane Specialist
Universal Insurance operates in the one place most insurers fear to tread: Florida&#8217;s hurricane-prone coastline. With a current stock price of $23.16 and market cap of $636.4 million, this isn&#8217;t a company for the risk-averse.
But here&#8217;s what&#8217;s interesting: they just reported Q4 2024 results with direct premiums written up 8.8% year-over-year to $470.9 million, despite facing three hurricanes (Debbie, Helene, and Milton). The company maintains relationships with 3,214 independent insurance agencies across 32 states and uses sophisticated risk assessment algorithms.
They&#8217;ve secured 92% placement of their 2025 first event catastrophe tower and additional multi-year capacity for the 2026 hurricane season. In an industry where most players are fleeing Florida, UVE has figured out how to price risk appropriately and stay profitable. Sometimes the best opportunities exist where others fear to go.
Each of these companies operates in markets that make institutional investors nervous—subprime lending, troubled retail, and hurricane insurance.
Each also have momentum building that could provide the buying pressure to send the shares dramatically higher.

Opinion

Under the Radar: 21% Annual Returns? This Value-Momentum Strategy Delivered for Decades

<h3>Companies Reporting Before The Bell</h3>
• Academy Sports (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASO#NASDAQ">ASO</a>) is expected to report quarterly earnings at $0.89 per share on revenue of $1.37 billion. 
• United Natural Foods (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UNFI#NYSE">UNFI</a>) is projected to report quarterly earnings at $0.22 per share on revenue of $7.79 billion. 
• JM Smucker (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SJM#NYSE">SJM</a>) is projected to report quarterly earnings at $2.25 per share on revenue of $2.19 billion. 
• Designer Brands (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DBI#NYSE">DBI</a>) is estimated to report quarterly loss at $0.06 per share on revenue of $732.82 million. 
• Core &amp; Main (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CNM#NYSE">CNM</a>) is likely to report quarterly earnings at $0.54 per share on revenue of $1.85 billion. 
<h3>Companies Reporting After The Bell</h3>
• Dave &amp; Buster's Enter (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PLAY#NASDAQ">PLAY</a>) is expected to report quarterly earnings at $1.01 per share on revenue of $565.00 million. 
• MIND Technology (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MIND#NASDAQ">MIND</a>) is likely to report quarterly earnings at $0.08 per share on revenue of $10.10 million. 
• GameStop (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GME#NYSE">GME</a>) is projected to report quarterly earnings at $0.04 per share on revenue of $754.23 million. 
• PetMed Express (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PETS#NASDAQ">PETS</a>) is projected to report quarterly loss at $0.06 per share on revenue of $48.19 million. 
• Stitch Fix (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SFIX#NASDAQ">SFIX</a>) is projected to report quarterly loss at $0.11 per share on revenue of $314.34 million. 
• GitLab (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GTLB#NASDAQ">GTLB</a>) is likely to report quarterly earnings at $0.15 per share on revenue of $213.21 million. 
• 17 Education &amp; Technology (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/YQ#NASDAQ">YQ</a>) is projected to report earnings for its first quarter. 
This article was generated by Benzinga's automated content engine and reviewed by an editor.

MIND

UNFI

Earnings Scheduled For June 10, 2025

Stitch Fix (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SFIX#NASDAQ">SFIX</a>) is preparing to release its quarterly earnings on Tuesday, 2025-06-10. Here's a brief overview of what investors should keep in mind before the announcement.
Analysts expect Stitch Fix to report an earnings per share (EPS) of $-0.11.
Stitch Fix bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.
New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).
<h3>Performance in Previous Earnings</h3>
In the previous earnings release, the company beat EPS by $0.05, leading to a 5.44% drop in the share price the following trading session.
Here's a look at Stitch Fix's past performance and the resulting price change:

<table>
<thead>
<tr>
<th>Quarter</th>
<th>Q2 2025</th>
<th>Q1 2025</th>
<th>Q4 2024</th>
<th>Q3 2024</th>
</tr>
</thead>
<tbody>
<tr>
<td>EPS Estimate</td>
<td>-0.10</td>
<td>-0.13</td>
<td>-0.19</td>
<td>-0.23</td>
</tr>
<tr>
<td>EPS Actual</td>
<td>-0.05</td>
<td>-0.05</td>
<td>-0.29</td>
<td>-0.18</td>
</tr>
<tr>
<td>Price Change %</td>
<td>-5.0%</td>
<td>44.0%</td>
<td>-39.0%</td>
<td>28.999999999999996%</td>
</tr>
</tbody>
</table>

<img src="https://www.benzinga.com/files/images/story/2025/1749477669_0.png" alt="eps graph" />
<h3>Tracking Stitch Fix's Stock Performance</h3>
Shares of Stitch Fix were trading at $4.64 as of June 06. Over the last 52-week period, shares are up 20.41%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release. 
<h3>Insights Shared by Analysts on Stitch Fix</h3>
Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Stitch Fix.
Analysts have given Stitch Fix a total of 2 ratings, with the consensus rating being Neutral. The average one-year price target is $6.0, indicating a potential 29.31% upside.
<h3>Analyzing Ratings Among Peers</h3>
In this comparison, we explore the analyst ratings and average 1-year price targets of Guess, Caleres and ThredUp, three prominent industry players, offering insights into their relative performance expectations and market positioning.
<ul>
<li>Analysts currently favor an Buy trajectory for Guess, with an average 1-year price target of $18.21, suggesting a potential 292.46% upside.</li>
<li>Analysts currently favor an Neutral trajectory for Caleres, with an average 1-year price target of $15.0, suggesting a potential 223.28% upside.</li>
<li>Analysts currently favor an Outperform trajectory for ThredUp, with an average 1-year price target of $6.62, suggesting a potential 42.67% upside.</li>
</ul>
<h3>Peer Analysis Summary</h3>
The peer analysis summary presents essential metrics for Guess, Caleres and ThredUp, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.

<table>
<thead>
<tr>
<th>Company</th>
<th>Consensus</th>
<th>Revenue Growth</th>
<th>Gross Profit</th>
<th>Return on Equity</th>
</tr>
</thead>
<tbody>
<tr>
<td>Stitch Fix</td>
<td>Neutral</td>
<td>-5.54%</td>
<td>$138.86M</td>
<td>-3.36%</td>
</tr>
<tr>
<td>Guess</td>
<td>Buy</td>
<td>-30.51%</td>
<td>$411.07M</td>
<td>-6.66%</td>
</tr>
<tr>
<td>Caleres</td>
<td>Neutral</td>
<td>-3.91%</td>
<td>$275.11M</td>
<td>1.11%</td>
</tr>
<tr>
<td>ThredUp</td>
<td>Outperform</td>
<td>10.47%</td>
<td>$56.37M</td>
<td>-9.28%</td>
</tr>
</tbody>
</table>

Key Takeaway:
Stitch Fix ranks at the bottom for Revenue Growth and Gross Profit, while it is in the middle for Return on Equity. Overall, its performance is below average compared to its peers in the analysis.
<h3>Unveiling the Story Behind Stitch Fix</h3>
Stitch Fix Inc offers personal style services for men and women. The company engages in delivering one-to-one personalization to clients through the combination of data science and human judgment. It provides a shipment service called A FIX where the stylist's hand selects items from several merchandise with analysis of client and merchandise data to provide a personalized shipment of apparel, shoes, and accessories suited to the client's needs. The company offers products across categories, brands, product types, and price points including Women's, Petite, Maternity, Men's, and Plus. It also offers various product types, including denim, dresses, blouses, skirts, shoes, jewelry, and handbags and sells merchandise across various ranges of price points.
<h3>Understanding the Numbers: Stitch Fix's Finances</h3>
Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.
Revenue Growth: Stitch Fix's revenue growth over a period of 3 months has faced challenges. As of 31 January, 2025, the company experienced a revenue decline of approximately -5.54%. This indicates a decrease in the company's top-line earnings. When compared to others in the Consumer Discretionary sector, the company excelled with a growth rate higher than the average among peers.
Net Margin: Stitch Fix's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of -2.09%, the company may face hurdles in effective cost management.
Return on Equity (ROE): Stitch Fix's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -3.36%, the company may face hurdles in achieving optimal financial returns.
Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of -1.33%, the company may need to address challenges in generating satisfactory returns from its assets.
Debt Management: With a below-average debt-to-equity ratio of 0.53, Stitch Fix adopts a prudent financial strategy, indicating a balanced approach to debt management.
<a href="https://www.benzinga.com/quote/SFIX/earnings">To track all earnings releases for Stitch Fix visit their earnings calendar on our site.</a>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Uncovering Potential: Stitch Fix's Earnings Preview

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Shares of companies within the broader consumer discretionary sector are trading higher amid overall market strength following softer-than-expected April inflation readings. Additionally, investors continue to weigh US-China trade progress and President Trump's Middle East trip.

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Shares of companies within retail, apparel, and e-commerce industries are trading lower amid heavy selling pressure as markets react to President Trump's tariff announcements, which may hamper consumer spending.

Press Releases

SHAREHOLDER ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Stitch Fix, Inc. - SFIX

SHAREHOLDER ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Stitch Fix, Inc.  - SFIX

Stitch Fix Announces Date for First Quarter 2025 Financial Results and Conference Call

Stitch Fix Announces First Quarter of Fiscal Year 2025 Financial Results

Stitch Fix Announces Date for Second Quarter 2025 Financial Results and Conference Call

Affirm adds Stitch Fix to its network of fashion merchants

Stitch Fix Announces Second Quarter of Fiscal Year 2025 Financial Results

Stitch Fix Announces Date for Third Quarter 2025 Financial Results and Conference Call

Stitch Fix Announces Third Quarter of Fiscal Year 2025 Financial Results

AFRM

American Eagle Outfitters, Inc. Common Stock

American Eagle Outfitters

Abercrombie & Fitch

Buckle

Boot Barn Holdings

Burlington Stores

Caleres

Citi Trends

Torrid Holdings

Designer Brands Inc. Class A Common Stock

Designer Brands

Foot Locker

Genesco

Guess

J.Jill

Lands' End

LuxExperience B.V. American Depositary Shares, each representing one Ordinary Share

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